Abstract : Contrary to popular belief, workers in California's aerospace industry weathered the defense budget reductions of the late 1980s and early 1990s in no worse shape than their nonaerospace durable manufacturing counterparts in the state. Both sectors experienced sharp business downturns and drops in employment, and workers in both endured this period-one of the most severe recessions in California history-in similar ways. Aerospace industry workers' employment histories during the period differed little from those of other durable goods manufacturing workers in the state. They were earning more than nonaerospace durable goods manufacturing workers in 1989, and the difference held through 1994.